Debenhams, the department store group, this morning sought to reassure investors concerned by its high debt levels by bringing forward its interim management statement.

The statement, which was set to appear on July 3, said that like-for-like sales for the past 10 weeks were up 1 per cent. The retailer claimed it was taking market share from rivals and that its £1 billion debt levels were under control. The news sent the shares up 5.5p, or more than 13 per cent, to 47.75p in early trading.

Debenhams added that like-for-like sales were down by 0.6 per cent for the 42-weeks to 21 June 2008 but gross transaction value for the 42-week period was 1.3 per cent higher.

The group said that difficult trading will not impact its ability to pay down its debt and the group had full support of its lending banks. Rob Templeman, the chief executive of Debenhams, said in a conference call with analysts that it was not necessary for the group to disclose detail of its banking covenants.

Fears over its results drove the shares down to an all-time low yesterday having fallen by around a third in the past month and by 69 per cent in the past year.

Debenhams said that "progress has been made" with deleveraging the balance sheet and a cost savings target of £20 million has been achieved that will take effect in 2009.

Mr Tempelman said that the company remains cash generative and net debt at the year end will be broadly flat, which is in line with market predictions. He said that a 1 per cent rise was "a very credible performance", although he refused to make future trading predictions.

He added: "In light of the tough trading environment across the whole retail sector, we are pleased with customer response to our new ranges and, as a result, our improving sales performance for the period.

"The strength of Designers at Debenhams is particularly pleasing. We continue to take market share across our key product categories."

Designers at Debenhams include Ted Baker, Jasper Conran, John Rocha, Theo Fennell, Frost French, Betty Jackson, Julien Macdonald and Matthew Williamson.

Mr Tempelman said that menswear was a particularly strong performer, womenswear sales were satisfactory, but childrenswear sales could be better. He said that visual merchandising techniques will be completed by the end of October.

He added that the group is sourcing new suppliers in places such as Bangladesh, India and Vietnam, on the back of commodity price rises and wage inflation in places such as China.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax